Course Syllabus

ECON 4355.501: ECONOMETRICS Fall 2011

Professor: Kurt Beron GR 2.806, (972) 883-2929, kberon@utdallas.edu. Office Hours: Tuesdays 5:30 6:30; and by appointment. TA: Caitlin McKillop GR 2.816, (972) 883-4914, cnm094020@utdallas.edu. Office Hours: Mondays 5:30 6:45; and by appointment. Home Page for Course is on eLearning. Computer Note: Our class will be using a computer program (Stata) available in the EPPS computer labs (GR 3.206 and GR 3.602). You must have a Campus id and password to use these computers. You will also have the option of purchasing the program for personal use.

Course Pre-requisites, Co-requisites, and/or Other Restrictions

(including required prior knowledge or skills)

The prerequisite for econometrics is an understanding of the material covered in ECON 3304, Basic Techniques for Economic Research, or permission of the instructor. In addition, it is assumed students have taken the principles of economics courses and, preferably, at least one intermediate theory course. Basic algebra, calculus, and statistics will be used throughout the semester. The appendices to the textbook A, B and C have material that I will review as we need it, though occasionally I reference this material in the schedule. I strongly suggest you do a quick review of what is there at the beginning of the semester so that you can independently study concepts that are less familiar as you come to them in the course. In particular I recommend the Probability Primer at the end of Chapter 1 (4th ed., but also within Appendix B of the 3rd ed.).

Course Description The subject of econometrics deals with the measurement of economic relationships. We will develop in class, using economic theory, statistics, and mathematics, techniques that can be used to estimate economic relationships. A major focus will be on how a researcher can confront a theory with data and draw some type of conclusion. While the emphasis is on economic analysis, the techniques are also used in many other disciplines such as political science, management, sociology and psychology. The core of the course will be the study of regression analysis. This method seeks to determine the influence of one or more variables on a variable of interest. We will

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examine the theory behind regression, the interpretation of the estimated parameters, and the testing of hypotheses about the parameters. This is both a theoretical and applied course, which requires a significant amount of time spent on the computer.

Student Learning Objectives/Outcomes Introduce the statistical technique of regression analysis, Analyze the assumptions, strengths and weaknesses of the Classical Linear Model. Use regression analysis to test hypotheses about economic behavior, with examples drawn from economics and other social sciences.

Required Textbooks and Materials Textbooks: Principles of Econometrics, 4th ed. Hill, Griffiths, and Lim, 2011 or, due to popular demand, Principles of Econometrics, 3rd ed. Hill, Griffiths, and Lim, 2008. Using Stata for Principles of Econometrics, 3rd ed. Adkins and Hill, 2008. Note, I had originally ordered the 4th edition of this Stata handbook, but its publishing date kept changing so we are sticking with the 3rd ed. The required textbooks are available at both the On-campus and Off-campus bookstores. Data: The course web site has the data that accompanies the textbook as well as Stata programs used in the text. Other data and programs will be placed there during the course of the semester. Note that I will place both the 3rd and 4th ed. programs that go along with the Stata handbook on the course website. The 3rd will enable you to match with your handbook, while the 4th will match with the textbook. The Stata statistical package will be introduced and utilized for data organization, estimation, hypothesis testing and assignments. Students will be expected to master basic Stata statistical and programming commands and to use Stata for their semester projects. Stata will be available in the computer lab, but there is the option of purchasing the software if the student chooses. Information about purchasing is on the course web site. Note that, unfortunately, we will be dealing with various versions of Stata. However Stata is well-suited to handling this, as we will see.

Other:

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Assignments & Academic Calendar

Tentative Reading Assignment Schedule Fall 2011 Econometrics (ECON 4355 Beron)
Readings are from the Hill, Griffiths and Lim 4th ed. text, with comparable 3rd ed. text material given in parentheses, and are listed for when they are supposed to have been read. It is expected that the accompanying reading material from the Adkins and Hill 3rd edition Stata manual will have been at least reviewed prior to class, and then practiced after class (if not before). Exam, paper and problem set dates are also listed below. Assume that preceding each dates topic is the word Continued from the previous class as many will span more than one class. Please note that the schedule skips around the textbook quite a lot. This is due to my own view that certain topics go together in a different order than presented. So be careful in reviewing what is supposed to be read. This is an ambitious schedule and so if, and when, we get behind the dates for exams and problem sets will not change. I will change the material covered in the problem set or exam to accommodate where we are in lecture, so plan your semester accordingly. Also note the series of optional Saturday lab sessions (from 10 11) should you have questions. New material will not be taught during them and they are only if you have specific questions that need to be answered. Also note that the labs are not in the same room where we have our two lab classes. August 30 Introduction and Chapter 1, pp. 1 9 (1-7) and summation review pp. 24 26 (464-465); Chapter 2, pp. 40 56 (9-26) ; Appendices 2A and 2B; Appendix A, pp. 639 640 (468-470).

September

Meet in GR 3.602 for a lab session and continuation of previous material. Chapter 2, pp. 74 75 (handout); Chapter 4, pp. 135 139 (80-84); Appendix 4B. Will go through Stata for Principles of Econometrics sections 1.1 1.14 and, continuing into next week, Chapter 2 of Stata for Principles of Econometrics. Problem Set 1 Given Meet in GR 3.602 for a lab session and continuation of previous material. Chapter 2, pp. 56 68 (26-36); Appendices 2C and 2D; Chapter 5, pp. 168 181 (105-117); and pp. 198 199 (124-126). Optional lab session 10 11 (GR 3.206)

13

17 (Sat)

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20

Chapter 3 pp. 94 114 (48-68); and Chapter 4, pp. 131 135 (76-79); and Chapter 5, pp. 180 188, omitting discussions of linear combinations of coefficients (117-124). Problem Set 1 Due Review of Problem Set 1 and Continued Note; depending on where we are I may announce that I am bringing in some of next weeks class here. Problem Set 2 Given

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October 4 Chapter 2 pp. 68 74; Chapter 4, pp. 139 156; Chapter 5 pp. 189 195 and pp. 195 197 (84-95, 166-170, 182-184; 470-475). Optional lab session 10 11 (GR 3.206)

8 (Sat)

11

Chapter 7, pp. 259 264; pp. 270 273; (170-175, 181-182, and 184186). Problem Set 2 Due (bring an extra copy of answers to class) Exam 1 Chapter 1, pp. 9-15 (Chapter 17). Chapter 6, pp. 222 231 (135-146). Paper Assignment Given

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November 1 Chapter 6, pp. 233 243 (148-156); Chapter 7, pp. 264 271 (175-181). Problem Set 3 Given Chapter 8, pp. 298 319 (Chapter 8). Optional lab session 10 11 (GR 3.206)

12 (Sat) 15

Chapter 9, pp. 336 339 (227-229); 347 360 (230-236; 239-243); Appendix 9A, pp. 392 394, Appendix 9C (259-260; 261 263). Chapter 7, pp. 273 275; Chapter 16, 586 597; browse pp. 719 723; (418-426; browse 528-532); Problem Set 3 Due TBA Paper Due

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December 6 Exam 2

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Grading Policy
(including percentages for assignments, grade scale, etc.)

The grade for the course will be based on three problem sets (the first two worth 10% each, the third worth 15%), an empirical paper (worth 15%) and two exams (25% each). You may work on the problem sets together, but all answers turned in must be written up independently. Remember that the answers to some of the questions in the textbook are available online, and these may help prepare you for some of the problem set questions. The problem sets must be legible and only one side of a sheet of paper may be used in writing up answers. The paper must be done independently and will be given a letter grade that will then be translated into an appropriate numeric grade. The paper must be typed and will be turned in both electronically as well as in hardcopy. Separately, the data that is used, along with all programs used, must be turned in. Exams will be open book and open notes (but dont assume this makes them easy!).

Course & Instructor Policies

Make-up exams/Late assignment policy: Exam dates will not be changed; I will
adjust material for the exam if we get behind. Make-up exams will only be given in extenuating circumstances with the exam itself likely being more difficult per the additional time and information available. Alternatively there may be a reweighting of future, untaken exams. No extra credit assignments will be given and late work will be penalized and not accepted after we have gone through the answers.

E-mail: Questions may be sent to Caitlin or me by e-mail throughout the semester. We

will answer them within two to three days, though usually sooner. For many students this will be the easiest way to get timely answers to questions. Additionally, whenever clarifications need to be made in material I will use e-mail to distribute the information, so you should check your e-mail periodically. A couple of important email rules: If you want me to read your e-mail, it must include ECON 4355 in the subject header. Otherwise it may well end up as automatically deleted spam. The University requires all official e-mail to go to your UTD address, so I will send most messages to your eLearning/UTDallas address. You may then forward them to some other address.

Decorum during class:

No cell phones on during class or text messaging No laptops in use other than for class-related activities you may use laptops, but when I walk around the room I dont expect to see e-mail, games, social network sites, etc. No gum, please

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Field Trip Policies Off-campus Instruction and Course Activities

Off-campus, out-of-state, and foreign instruction and activities are subject to state law and University policies and procedures regarding travel and risk-related activities. Information regarding these rules and regulations may be found at the website address http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional information is available from the office of the school dean. Below is a description of any travel and/or riskrelated activity associated with this course.

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have rules and regulations for the orderly and efficient conduct of their business. It is the responsibility of each student and each student organization to be knowledgeable about the rules and regulations which govern student conduct and activities. General information on student conduct and discipline is contained in the UTD publication, A to Z Guide, which is provided to all registered students each academic year. The University of Texas at Dallas administers student discipline within the procedures of recognized and established due process. Procedures are defined and described in the Rules and Regulations, Board of Regents, The University of Texas System, Part 1, Chapter VI, Section 3, and in Title V, Rules on Student Services and Activities of the universitys Handbook of Operating Procedures. Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and regulations (SU 1.602, 972/883-6391). A student at the university neither loses the rights nor escapes the responsibilities of citizenship. He or she is expected to obey federal, state, and local laws as well as the Regents Rules, university regulations, and administrative rules. Students are subject to discipline for violating the standards of conduct whether such conduct takes place on or off campus, or whether civil or criminal penalties are also imposed for such conduct.

Academic Integrity
The faculty expects from its students a high level of responsibility and academic honesty. Because the value of an academic degree depends upon the absolute integrity of the work done by the student for that degree, it is imperative that a student demonstrate a high standard of individual honor in his or her scholastic work. Scholastic dishonesty includes, but is not limited to, statements, acts or omissions related to applications for enrollment or the award of a degree, and/or the submission as ones own work or material that is not ones own. As a general rule, scholastic dishonesty involves one of the following acts: cheating, plagiarism, collusion and/or falsifying academic records. Students suspected of academic dishonesty are subject to disciplinary proceedings. Plagiarism, especially from the web, from portions of papers for other classes, and from any other source is unacceptable and will be dealt with under the universitys policy on plagiarism (see general catalog for details). This course will use the resources of turnitin.com, which searches the web for possible plagiarism and is over 90% effective.

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Email Use
The University of Texas at Dallas recognizes the value and efficiency of communication between faculty/staff and students through electronic mail. At the same time, email raises some issues concerning security and the identity of each individual in an email exchange. The university encourages all official student email correspondence be sent only to a students U.T. Dallas email address and that faculty and staff consider email from students official only if it originates from a UTD student account. This allows the university to maintain a high degree of confidence in the identity of all individual corresponding and the security of the transmitted information. UTD furnishes each student with a free email account that is to be used in all communication with university personnel. The Department of Information Resources at U.T. Dallas provides a method for students to have their U.T. Dallas mail forwarded to other accounts.

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any college-level courses. These dates and times are published in that semester's course catalog. Administration procedures must be followed. It is the student's responsibility to handle withdrawal requirements from any class. In other words, I cannot drop or withdraw any student. You must do the proper paperwork to ensure that you will not receive a final grade of "F" in a course if you choose not to attend the class once you are enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Services and Activities, of the universitys Handbook of Operating Procedures. In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillments of academic responsibility, it is the obligation of the student first to make a serious effort to resolve the matter with the instructor, supervisor, administrator, or committee with whom the grievance originates (hereafter called the respondent). Individual faculty members retain primary responsibility for assigning grades and evaluations. If the matter cannot be resolved at that level, the grievance must be submitted in writing to the respondent with a copy of the respondents School Dean. If the matter is not resolved by the written response provided by the respondent, the student may submit a written appeal to the School Dean. If the grievance is not resolved by the School Deans decision, the student may make a written appeal to the Dean of Graduate or Undergraduate Education, and the deal will appoint and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is final. The results of the academic appeals process will be distributed to all involved parties. Copies of these rules and regulations are available to students in the Office of the Dean of Students, where staff members are available to assist students in interpreting the rules and regulations.

Incomplete Grade Policy

As per university policy, incomplete grades will be granted only for work unavoidably missed at the semesters end and only if 70% of the course work has been completed. An incomplete grade must be resolved within eight (8) weeks from the first day of the subsequent long semester. If the required work to complete the course and to remove the incomplete grade is not submitted by the specified deadline, the incomplete grade is changed automatically to a grade of F.

Disability Services

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The goal of Disability Services is to provide students with disabilities educational opportunities equal to those of their non-disabled peers. Disability Services is located in room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m. The contact information for the Office of Disability Services is: The University of Texas at Dallas, SU 22 PO Box 830688 Richardson, Texas 75083-0688 (972) 883-2098 (voice or TTY) Essentially, the law requires that colleges and universities make those reasonable adjustments necessary to eliminate discrimination on the basis of disability. For example, it may be necessary to remove classroom prohibitions against tape recorders or animals (in the case of dog guides) for students who are blind. Occasionally an assignment requirement may be substituted (for example, a research paper versus an oral presentation for a student who is hearing impaired). Classes enrolled students with mobility impairments may have to be rescheduled in accessible facilities. The college or university may need to provide special services such as registration, note-taking, or mobility assistance. It is the students responsibility to notify his or her professors of the need for such an accommodation. Disability Services provides students with letters to present to faculty members to verify that the student has a disability and needs accommodations. Individuals requiring special accommodation should contact the professor after class or during office hours.

Religious Holy Days

The University of Texas at Dallas will excuse a student from class or other required activities for the travel to and observance of a religious holy day for a religion whose places of worship are exempt from property tax under Section 11.20, Tax Code, Texas Code Annotated. The student is encouraged to notify the instructor or activity sponsor as soon as possible regarding the absence, preferably in advance of the assignment. The student, so excused, will be allowed to take the exam or complete the assignment within a reasonable time after the absence: a period equal to the length of the absence, up to a maximum of one week. A student who notifies the instructor and completes any missed exam or assignment may not be penalized for the absence. A student who fails to complete the exam or assignment within the prescribed period may receive a failing grade for that exam or assignment. If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of observing a religious holy day] or if there is similar disagreement about whether the student has been given a reasonable time to complete any missed assignments or examinations, either the student or the instructor may request a ruling from the chief executive officer of the institution, or his or her designee. The chief executive officer or designee must take into account the legislative intent of TEC 51.911(b), and the student and instructor will abide by the decision of the chief executive officer or designee.

These descriptions and timelines are subject to change at the discretion of the Professor.

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